Inventiva Shares Drop 4% at Close Following Extension Option Exercise
Inventiva, a biopharmaceutical company, saw its shares close down 4.02% on Friday, November 21, at 3.465 euros, erasing some of the week's gains. This correction follows shortly after the completion of a major fundraising of $172.5 million from American investors, amid technical readjustments following the capital increase.
Day's Decline Post Stabilization Period Closure
The day's decline occurred after the closure of the stabilization period related to the full exercise of the banks' option, announced on November 17. The bookrunners of the offer subscribed to an additional 5,844,155 ADS, bringing the total amount raised to approximately $172.5 million. This operation follows the initial issuance of 38,961,038 new American Depositary Shares at a subscription price of $3.85 per ADS, equivalent to 3.33 euros per ordinary share. Trading volumes remained modest this Friday, with only 0.15% of the capital changing hands, reflecting some investor anticipation. Nevertheless, the stock has shown a weekly increase of 6.13%, while the CAC 40 ended almost stable at 7,982.65 points with a slight increase of 0.02%.
Capital Increase Triggers Threshold Crossings
This capital increase has mechanically led to several threshold crossings downwards: Sofinnova Partners now holds 4.41% of the capital, down from over 5% previously, due to the increase in the total number of shares. Samsara BioCapital also crossed below the 5% threshold, holding 8,345,389 shares representing 4.37% of the capital and 4.10% of the voting rights as of November 17. The company plans to use the net proceeds from the offering primarily to fund the continuation of its Phase 3 NATiV3 clinical trial, thus enhancing its financial visibility until key stages of its clinical development. Over three months, the stock has declined by 10.93%, but maintains a solid annual increase of 34.3%, well above the CAC 40's 10.89% over the same period.
Technical Perspective on Stock Performance
From a technical standpoint, the stock is trading at 3.465 euros, well below its 50-day moving average of 3.98 euros, indicating a consolidation phase after the fundraising. This nearly 13% distance from the MA50 illustrates investor caution regarding capital dilution. The RSI stands at 50, in a neutral zone, confirming the lack of a marked short-term trend, while the MACD histogram displays a slightly positive signal at 0.07, suggesting a potential for stabilization. The stock is now trading above its 200-day moving average at 3.28 euros, thus maintaining a medium-term bullish bias. The upcoming sessions are expected to be marked by the search for a new balance between the technical support at 3.04 euros and resistance at 4.00 euros, in an environment where one-month volatility reaches 23.03%, reflecting the usual nervousness of biotech stocks in financing phases.
